2414096
Description
Flashcards by dylan_earl, updated more than 1 year ago
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Created by dylan_earl
over 10 years ago
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| Question | Answer |
| What is the capital Budgeting decision/Investment Decision | What capital investment projects to invest in |
| What is the decision called to pay for assets in a capital investment project? | Financial Decision |
| Capital Investment projects and paying for assets is determined by the ________ Manager | Financial Manager |
| What 3 needs to be considered about benefits of making a decision to invest in a project? (Hint: ATR) | Amount of Benefits, Timing of Benefits, Risks associated with Benefits |
| What are two methods of raising funds? | Externally and Internally |
| Types of External Financing (When deciding called Capital Structure Decision) | Debt Financing & Equity Financing |
| ________ Assets are used to produce goods and services | Real Assets |
| ______ Assets are claims to the income generated by the firms production assets | Financial |
| A Corporation is a ________ ________ that allows the owners to have _______ _________ | Legal Entity, Limited Liability |
| Shareholders are owners but the corporations are run by employees led by the ______ | CEO |
| Separation of ownership and control adds flexibility (True/False) | True |
| A Corporation can Sue and be Sued (T/F) | True |
| Shareholders can sell shares (T/F) | True |
| Corporations are taxed twice (T/F) | True On company profits and in hands of shareholders |
| Name 4 Types of Business | Sole Proprietorship Partnership (General/Limited) Hybrid forms (LLP, LLC etc) Corporation |
| Two people under CFO | Treasurer (looks after cash, raising capital etc) Controller (Financial statements, accounting etc) |
| 3 Goals of a Corporation | Shareholders want max market value of corp. Increase market value to increase shareholder wealth. Max current share price = main objective |
| Managers are hired as agents of the owners and consider all stakeholders (T/F) | True |
| Agency Problems are when personal goals of agents conflict with roles in corp (T/F) | True |
| 5 Ways to reduce Agency Problems | Compensation Plans Board of Directors Threat of Takeovers Specialist Monitoring Legal and Regulatory Requirements |
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